Dustan, I wasn't going to respond because you seem too conservative for my approach, but what the heck. 2nd deal was funded partially with my HELOC and private money (cousin, 10% interest). 3rd deal was funded by private money (another cousin). 4th deal was funded again by the HELOC. 5th deal was funded by 2 CREDIT CARDS (0% interest, 3% balance transfer). 6 deal onward was funded by partners and private money. last deal was funded by 2 CREDIT CARDS again.

Later, when their circumstances change or otherwise, they "quit claim" or transfer the deed (ownership) to an LLC, so they no longer own it in their personal name.

They currently pay $1800 for an apt, so they'd just transfer that amount to me.

Once recorded, the original deed is just a piece of paper and a new deed is created showing transfer from one owner to the next owner.

You'll obviously have quite a few credits from prorated rents, prorated taxes and transfer of security deposits.

An amount equal to $___________ of each payment for each month in which rent was paid, will be credited to the Tenant/Buyer and applied to the purchase price of the property in the event that the Tenant/Buyer exercises its option hereunder and legal title transfers.Exclusive occupancy and possession of the property transfer to the Tenant/Buyer on the date under "2" above and remain with the buyer during the term of this agreement and any extensions thereof, unless Tenant/Buyer defaults on any payment required by this contract.

It is probably also fraud because you are defrauding the state of property transfer taxes and the wife of money she may be legally due.Assuming the money is on the HUD-1, the problem is it doesn't even achieve what he wants.

One week before closing, the bank learns that the property was transferred from an LLC to the sellers person less than 180 days ago, this means the property falls under flipping rules and needs a second appraisal.

This transfer could trigger the due on sale clause in the mortgage, but from what i understand the banks don't generally enforce that. 

Perhaps you are smart enough to just transfer the deed to the LLC but keep the cheaper insurance in your name....nice try.